When the expected inflation rate increases, the real cost of borrowing ________ and bond supply ________, everything else held constant
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
C
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Refer to the scenario above. What is Alice's optimal bidding price?
A) $25,000 B) $30,000 C) $24,000 D) $36,000
The risk premium of corporate bonds typically increases
A) when the average price of corporate bonds increase. B) during a recession. C) when the interest rates on corporate bonds decreases. D) when the risk premium on treasury bonds increases.
During the peak season, when demand for pipeline transport of natural gas at the maximum legally allowable price exceeds the available capacity:
a. buy-sell transactions take place. b. pipeline owners vertically integrate into gas production. c. price discrimination becomes prominent. d. pipeline owners use discretionary powers to ration capacity to shippers.
The supply curve for a monopoly is:
A. the portion of the marginal cost curve that lies above the average total cost curve. B. the portion of the marginal cost curve that lies above the average fixed cost curve. C. not a curve but a single point. D. the portion of the marginal cost curve that lies above the average variable cost curve.